Sowetan

GP to pay R12.9bn for e.tolls removal

Province’s contributi­on is 30% of the R43bn bill for decommissi­oning

- By Penwell Dlamini dlaminip@sowetan.co.za

Gauteng premier Panyaza Lesufi says the provincial government will contribute R12.9bn towards the decommissi­oning of e-tolls.

Lesufi met with finance minister Enoch Godongwana and the SA National Roads Agency (Sanral) – accompanie­d by finance MEC Jacob Mamabolo and transport MEC Kedibone Diale-Tlabela – on Tuesday.

The meeting sought to conclude outstandin­g matters pertaining to the decommissi­oning of e-tolls, which includes determinin­g the 30% contributi­on by the provincial government towards settling the e-toll debt, as well as the funding model of the Gauteng Freeway Improvemen­t Project (GFIP).

Lesufi’s spokespers­on Vuyo Mhaga told Sowetan that the meeting resolved that the total amount to be paid by the provincial government was R12.9bn (30% of R43bn) using different revenue streams in the form of a hybrid model.

He said a technical team had been set up to provide details as to what these revenue streams would be to raise the R12.9bn and pay the debt.

“A long-term repayment period will ensure that we relieve the pressure on the provincial government fiscus, whilst maintainin­g the delivery of social services and other imperative­s such as fighting crime,” said Lesufi.

The technical team has also been tasked to come up with the process of decommissi­oning the e-tolls.

“More work still needs to be done jointly by the Gauteng government, national department of transport, Sanral and National Treasury to clarify maintenanc­e and decommissi­oning of e-tolls,” Lesufi said.

In October, Godongwana announced in his medium-term expenditur­e framework that the national government would take a portion (70%) of the e-toll debt following a civil boycott by most citizens in the province.

E-tolls were introduced by Sanral to pay for money borrowed in the GFIP. The introducti­on of the system in 2013 turned ANC alliance partners – Cosatu and SACP – against government as they believed the system would place more financial pressure on workers.

Civil society led from the front, calling on people not to pay their e-toll bills, arguing that the system was unsustaina­ble.

 ?? / DANIEL BORN ?? An e-toll gantry is a spectacle of light in the evening. A technical team has been tasked to come up with the process of decommissi­oning the e-tolls to complete the scrapping of the system in Gauteng.
/ DANIEL BORN An e-toll gantry is a spectacle of light in the evening. A technical team has been tasked to come up with the process of decommissi­oning the e-tolls to complete the scrapping of the system in Gauteng.

Newspapers in English

Newspapers from South Africa